Moody's Investors Service said it has assigned a Aa1 rating to Dallas ISD's $143,340,000 limited maintenance tax qualified school construction notes, taxable Series 2013 (direct pay subsidy notes), and upgraded to Aa1 from Aa2 rating on the district's $2.5 billion in outstanding general obligation unlimited tax debt.
The outlook remains stable.
The notes are direct obligations of the district payable from available funds of the district including but not limited to the ad valorem taxes levied for maintenance purposes, within the limitations of the maintenance tax authority.
The outstanding general obligation bonds are secured by an unlimited ad valorem tax.
The upgrade to Aa1 reflects the district's significantly improved financial operations resulting from conservative budgeting and tightened expenditure controls supporting healthy reserve levels more consistent with the Aa1 rating.
Additionally, the Aa1 rating takes into consideration the district's large, diverse, and expanding tax base as well as growing enrollment that are mitigating factors to the low socioeconomic profile that is typical for a large, urban school district. The district has a high direct debt burden and although new debt is expected, tax base growth should keep the debt burden stable.
